Business Combnations Essay Example | Topics and Well Written Essays - 1000 words

Business Combnations - Essay congressmanMost of the nuclear fusions or acquisitions of LVMH happen to expand the company and to cross the geographical boundaries. A company fire to acquire another company has to look into every aspect of the functioning of the company. A company volition have many departments and audit should be done on every departments accounts and so valuate the viability of uniting of acquisition. afterwards audit if it is found that functioning of wholly the departments are well-informed and profitable therefore a memorandum is made between the companies.Mergers can take place only when there are healthy relations between both the companies. Mergers also depend on the percentage of shares acquired of the firm. If the company to be acquired has equitable standing in the market, high share value and high points in the share market then we can say that a company is worth to be acquired or suitable for acquisition. Merger or acquisition sure has its impac t on the employees and shareholders who are the unforeseen assets of the company. It is well known that any merger will have its pros and cons. Some mergers happen for profit and some not to incur losses. Employees may or may not be benefited by the merger. The new management may not provide all the facilities unlike the earlier owner. The new company will definitely try to curb miscellaneous expenses and truncated management costs. In order to cut costs they may reduce number of employees working per department. After merger employees may be asked to change their shift timings, move from one department to another and so forth employees need to co-operate with the new management.Mergers may also have its negative effects on the employees and marketing strategies then the relation between the management should be positive enough so that there is no fault between the employer and the employee. After acquisition the new company will have their own planning strategies that competency be entirely different and the employees need to co-operate and understand with new working policies and targets of the new company.One of the normal reasons of merger (acquisition) failure is poor management and insufficient and poor management of financing comes second. For starting or relocating or expanding a business sufficient capital is required. Having good financing is not enough in attaining profits proper knowledge and planning are required to manage it well. These help in beef up the management of financing and avoid popular mistakes like miscalculating or underestimating the cost. Venture capitalists are the most common source of equity funding. Venture capitalists may be institutional risk takers, financial institutions, wealthy persons, and so on and most of them specialize in industries. Venture capitalists are risk takers and show interest only in three to five year old companies that result in more than average profits. LVMH intensified the repugn of global in tegration and is showing high-end results, impact on the part of economical evolutions on nations mainly on cities and individual persons life standard. Because of the globalization and LVMH the technologies are exchanged. Globalization is having tremendous impact on cities. Cities are transforming into big industrial belts. As the industries grow there will be visible impact on the economy. stock opportunities grow and innumerable colonies are developed. The growth is multi-fold and the technology exchange migration takes place.People of